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Trying to figure operational costs on my first plow

Discussion in 'Commercial Snow Removal' started by Four Seasons, Oct 19, 2010.

  1. Four Seasons

    Four Seasons Senior Member
    Messages: 157

    Going to start plowing this year, bought a new Hiniker 8.5 Poly V for my 2500 and Im trying to figure my operational costs for just the plow. Im just not really sure how long it will last but adding things up and some guessing gets me to $8 per hour while the blade is down. Is that too high?
     
  2. mrsnowman

    mrsnowman Senior Member
    Messages: 126

    If you are talking about costs for the truck, plow, insurance, fuel, etc etc. I think you are way low, especially if you factor labor into it.
     
  3. Four Seasons

    Four Seasons Senior Member
    Messages: 157

    no, I said "just the plow"
     
  4. cold_and_tired

    cold_and_tired PlowSite.com Addict
    Messages: 1,246

    Well, you need to know your depreciation. What did you pay for it and how much do you plan to sell it for after a certain number of years?

    Purchase and Install: $5,000
    Sell in five years: $2,500
    Depreciation per year: $500
    Take the yearly value and divide it by your number of billable truck hours
    EXAMPLE: $500/100 hours= $5 per hour

    Figure a fluid change every year at $50
    $50/100= $.50 per hour

    Two steel cutting edges over five years $150
    $150/100= $1.50 per hour

    I don't think I'm missing anything major. So $7-8 an hour sounds about right. Of course, this cost will vary depending on how many billable hours you have per year.
     
  5. Brant'sLawnCare

    Brant'sLawnCare PlowSite.com Addict
    Messages: 1,754

    That's a good breakdown.
     
  6. rvice51866

    rvice51866 Junior Member
    Messages: 1

    plowing charges

    hey guys
    this will be my 2nd snow season and i was wondering what the average rate is for plowing? I live in central iowa and would like some answers as to what to charge my customers without them feeling like they are being raped. I also have another opportunity to bid on a federal contract for snow removal,sanding pushing so what would be an average hourly rate? any help would be appreciated thanks
     
  7. cold_and_tired

    cold_and_tired PlowSite.com Addict
    Messages: 1,246

    These "what should I charge" type of questions are kind of frowned upon here. Nobody will be able to tell you what you should charge.

    If this is your second year, just charge what you did last year with a 2-5% increase.

    There are so many different ways to charge for plowing snow. Seasonal, hourly, per push, etc. When you ask what the average rate is, we really dont know what you mean. We also don't know what pieces of equipment you are asking about prices for.
     
  8. wizardsr

    wizardsr PlowSite.com Addict
    Messages: 1,557

    Charge enough to cover your costs and put some money in your pocket. If you're super busy but don't have much left at the end of the year, you're too low. If you're super slow and can't seem to land any new customers, you're too high. :waving: